Vietnam Business Law Blog

From 15 January 2018, Decree 8/2018 has simplified the conditions for obtaining a licence to import petrol for domestic distribution under Decree 83/2014 as below:

Old Regulations – Decree 83/2014

New Regulations – Decree 8/2014

Notes

Being
established lawfully, having registered for petrol and oil trading as
specified in its enterprise
registration certificate

Being
established lawfully.

The
change is not material. Without the amendment, under the enterprise
registration, the petrol importer still needs to register for petrol and oil
trading.

Having
a special-use wharf in Vietnam’s international port system, which is capable
of receiving oil tankers or other petrol and oil transport vehicles with a tonnage
of at least 7,000 tons under its ownership or co-ownership or on a lease for
at least five years.

No
change same as old regulations.

Having
a depot with a minimum capacity of 15,000 cubic meters to receive petrol and
oil from oil tankers and special-use transport vehicles, which are under its
ownership or co-ownership or on a lease for at least five years.

No
change same as old regulations.

Three
years after being granted a petrol and oil import or export license, the
trader must own or co-own with a capital contribution of at least 51% the
depot system, which is capable of meeting at least one-third of the trader’s
reserve demand.

Not
applicable

Traders
no longer have to bear the burden of ownership of such depot.

Having
vehicles for domestic petrol and oil transport under its ownership or
co-ownership or on a lease for at least five years from a petrol and oil
service provider.

No
change same as old regulations.

Two
years after being granted a petrol and oil import or export license, the
trader shall own or co-own with a capital contribution of at least 51%
vehicles for domestic petrol and oil transport with a total load capacity of
at least 3,000 m3.

Not
applicable

Traders
no longer have to bear the burden of owning vehicles.

Having
a petrol and oil distribution system: At least 10 petrol and oil retail
stations under its ownership or co-ownership and at least forty 40 petrol and
oil general agents or retail agents in its distribution system.

No
change same as old regulations.

Petrol
distribution system includes retail stations and agent system which comprises of general agents, retail agents and retail
franchisees.

The wording of Decree 83/2014 suggests that a petrol
importer must have a distribution network of at least 50 petrol stations.

Every
year after being granted a petrol and oil import or export license, the
trader shall own or co-own at least four petrol and oil retail stations until
its distribution system has at least 100 petrol and oil retail stations.

Not
applicable.

Trader
is not required to expand its network annually.

Being
in accordance with the master plan on petrol and oil importers and exporters

Master
plan on petrol and oil importers and exporters is removed.

Traders
are no longer subject to master plan on petrol and oil importers and
exporters

This post is contributed in parts by Dinh Thi Khanh Linh, an intern at Venture North Law.